1 Cournot Suppose that the inverse market demand function is given by P 100 - Q. where Q is the total output. There are two firms in the industry. Each firm has a total cost function given by C competing in quantities. Calculate the profit maximizing price and quantity for both firms. = 104., where i = 1,2. They are

1 Cournot Suppose that the inverse market demand function is given by P 100 - Q. where Q is the total output. There are two firms in the industry. Each firm has a total cost function given by C competing in quantities. Calculate the profit maximizing price and quantity for both firms. = 104., where i = 1,2. They are

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. What is the output that maximize revenue for ufe firm given the following demand function Q = 15 – 0.05 P 7. "What is the output that minimize ATC for a firm given the following total cost function TC = 31 Q + 24 Q² – 5.5 Q' + (1/3) Q* |
8. Two firms competing a la Hotelling with fixed locations and symmetric constant marginal costs. Suppose there is a line between 0 and 1 in which two rms locate themselves, firm 0 being at point xo = 0 and firm 1 being at point x1 = 1. Each firm has a linear cost function C (q.) = cq.where q.represents output level of firm/product i = 0,1, parameter is such that c > 0. Consumers are located between 0 and 1 and are distributed uniformly according the the graph %3D below. 1 Вyyx from 0 Buy from 1 x* 1 Consumers value the product firm i = 0,1 in r¡ > 0 and incur a disutility from travelling to the location of the product which is assume to be a linear function of distance. The mass of consumers is normalized to 1 since that is the area in the graph. Indirect utility function for consumers is then V (rip;x) = ri -t|Xj. X|- p; where p; denotes the price of product/ firm i = 0,1 and x is the consumer (point) that is located in the line between 0 and 1. Each consumer wants at most one unit…
Consider an industry with the market demand Q=130-P. Firms' marginal cost and average cost are the same, MC=AC=10. What is the competitive equilibrium quantity Qc, the competitive equilibrium price Pc, and the competitive equilibrium profit c
Economics Consider a Cournot competition with N identical firms, each having MC=0 and FC=0. Inverse demand is P=10-Q. Which of the following is true? (several answers are allowed, wrong answers are penalized!). Select one or more: a. As N increases total market quantity increases b. As N increases profit per firm decreases C. As N inreases the sum of all firms profits remains unchanged d. As N increases market price decreases Consider a Cournot competition with N identical firms, each having MC=0 and FC=0. Inverse demand is P=10-Q. Which of the following is true? (several answers are allowed, wrong answers are penalized!). Select one or more: a. As N increases total market quantity increases b. As N increases profit per firm decreases c. As N inreases the sum of all firms profits remains unchanged d. As N increases market price decreases
Part C D
Due to an increase in the price of a competitor's product, the demand for a firm's product increases sharply. How is this most likely to affect the firm's marginal revenue and marginal cost? OA. Both marginal revenue and marginal cost will increase. OB. Marginal revenue will increase but marginal cost will decrease. OC. Marginal revenue will increase but marginal cost will not change. OD. Both marginal revenue and marginal cost will not be affected. OE Marginal revenue will not change but marginal cost will increase.
please do only part D and E in 30-40 minutes will upvote ...hand written plzzz
Now suppose there are 100 firms in this industry, all with identical cost schedules. Fill inthe market quantity supplied at each price in the market.
. In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What price should the firm charge? Why?
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Assuming that the competitive firms output is doubled then what will happen to the firms total revenue
What is the total variable cost in perfectly competetive firms